TEN Ltd Reports Strong Results for the Third Quarter and Nine Months Ended September 30, 2022

In this article:
Tsakos Energy NavigationTsakos Energy Navigation
Tsakos Energy Navigation

600% increase in nine-month operating income

Three-fold net income rise to $103 million in first nine months of 2022

50% increase in dividend payment. Total payments of $500 million since 2002

New strategic partnership with major energy company

Market fundamentals remain positive

ATHENS, Greece, Nov. 22, 2022 (GLOBE NEWSWIRE) -- TEN, Ltd (TEN) (NYSE: TNP) (the “Company”) today reported results (unaudited) for the nine months and third quarter ended September 30, 2022.

NINE MONTHS 2022 SUMMARY RESULTS
In the first nine months of 2022, TEN’s modern and diversified fleet generated gross revenues of $590 million, $183 million higher than the 2021 first nine-months, reflecting the strength of the tanker markets. Operating income climbed to $134 million, a six-fold increase.

Net income for the first nine months of 2022 exceeded $103 million or $2.77 per share.

Adjusted EBITDA reached $236 million in the 2022 first nine months, $150 million higher than the 2021 nine-month level.

Average TCE per ship per day for the first nine months of this year amounted to $27,075, 60% higher than the 2021 nine-month level while utilization reached 93.7% after 14 vessels completed their dry dock earlier than scheduled to be ready for market improvements.

Average daily operating expenses per vessel remained competitive at $8,345, slightly higher than the 2021 nine-month level.

Depreciation and amortization combined were 3.5% lower from the 2021 nine-month period at $103.4 million.

During the first nine months of this year, debt payments amounted to $332 million, further lowering related interest payments while maintaining solid cash reserves of over $200 million.

Q3 2022 SUMMARY RESULTS
TEN enjoyed a strong third quarter with gross revenues of $224 million, $92 million higher than the 2021 third quarter, and operating income of $67 million, with the same number of vessels between the two periods.

Net income attributable to TEN during the 2022 third quarter reached $51.3 million, a 300% increase from last year, or $1.48 per share.

Adjusted EBITDA amounted to $103 million in the 2022 third quarter, over five times higher than the 2021 third quarter.

Despite five vessels completing their dry-docking this third quarter, fleet utilization increased to 94.3%, resulting in an average TCE per vessel per day of $32,085, 105% higher from the equivalent 2021 period.

Depreciation and amortization combined were 1.3% lower from the 2021 third quarter at $35.8 million.

Daily vessel operating expenses, reflecting global inflationary pressures, dry-docking expenses and the introduction of two newly acquired LNG and shuttle tanker vessels with inherently higher costs, averaged a still competitive $8,915 in the 2022 third quarter.

SUBSEQUENT EVENTS
Following the deliveries from South Korea of the LNG “TENERGY” in January 2022 and the DP2 shuttle tanker “PORTO” in July 2022, in November 2022 TEN took delivery of the 2020 South Korean built VLCC, “DIAS I”, the third in TEN’s fleet.

In addition, this month TEN was awarded a maximum 15-year contract, for up to three shuttle tanker vessels by a major energy concern. This brings the company’s DP2 shuttle tanker fleet to seven units, all of them on long-term accretive contracts.

TEN has completed its inaugural Environment, Social and Governance (‘ESG’) Report, detailing the company’s ESG strategy and performance which will be made available on the company website.

DIVIDEND – COMMON SHARES
TEN’s Board of Directors has approved a dividend of $0.15 per common share to be paid on December 20, 2022 to holders of record as of December 14, 2022. This distribution reflects the second payment for 2022 which is in line with TEN’s semi-annual dividend policy and represents a 50% increase from the prior dividend of $0.10 per common share paid in July 2022. Inclusive of this upcoming distribution, TEN will have paid common shareholders half a billion dollars in dividends since its 2002 NYSE listing.

STRATEGY & OUTLOOK
With favorable market fundamentals, and with an orderbook continuing to linger at historical low levels and yard capacity tight for at least the next three years, the backdrop for a sustainable strong tanker market has been set. The geopolitical events that have led to an increase in ton miles, together with the global oil demand approaching pre-covid levels could further substantiate this fact.

In this environment, TEN’s modern and diversified fleet is well placed to take advantage of strong spot rates and secure long-term accretive employments to major end users.

Building on the tanker market strength management will also consider the strategic divestment of some of its earlier generation tankers, both in the crude and product space, and reinvest part, or all, of any potential gains for newer generation vessels.

TEN’s presence and expansion in the more specialized sectors like shuttle tankers and LNG is expected to continue as management is actively exploring attractive opportunities in both of these segments for longer-term industrial transactions.

“Having safely navigated through the rocky waters of recent years, TEN is well placed to take advantage of the medium to long-term positive fundamentals in the tanker sector,” George Saroglou, COO of TEN commented. “Our mix of strategic long-term accretive transactions and upside exposure ensures positive results, a strong balance sheet, liquidity for expansion and continuous dividends,” Mr. Saroglou concluded.

Conference Call Details:
Today, Tuesday, November 22, 2022 at 10:00 a.m. Eastern Time, TEN will host a conference call to review the results as well as management's outlook for the business. The call, which will be hosted by TEN's senior management, may contain information beyond that which is included in the earnings press release.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 877 405 1226 (US Toll-Free Dial In) or +1 201-689-7823 (US and Standard International Dial In). Please quote “Tsakos” to the operator and/or conference ID 13734378.
Click here for additional participant International Toll-Free access numbers.

Alternatively, participants can register for the call using the call me option for a faster connection to join the conference call. You can enter your phone number and let the system call you right away. Click here for the call me option.

Simultaneous Slides and Audio Webcast:
There will also be a live, and then archived, webcast of the conference call and accompanying slides, available through the Company’s website. To listen to the archived audio file, visit our website www.tenn.gr and click on Webcasts & Presentations under our Investor Relations page. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

ABOUT TSAKOS ENERGY NAVIGATION
TEN, founded in 1993 and celebrating 29 years as a public company this year, is one of the first and most established public shipping companies in the world. TEN’s diversified energy fleet currently consists of 70 double-hull vessels including four dual-fuel LNG powered aframax vessels under construction and a 2020-built scrubber-fitted South Korean-built VLCC that was delivered in the fourth quarter of 2022, constituting a mix of crude tankers, product tankers and LNG carriers, totaling 8.1 million dwt.

ABOUT FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. TEN undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

For further information, please contact:
Company
Tsakos Energy Navigation, Ltd.
George Saroglou
COO
+30210 94 07 710
gsaroglou@tenn.gr

Investor Relations / Media
Capital Link, Inc.
Nicolas Bornozis
Markella Kara
+212 661 7566
ten@capitallink.com



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

Selected Consolidated Financial and Other Data

(In Thousands of U.S. Dollars, except share, per share and fleet data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

September 30 (unaudited)

 

 

September 30 (unaudited)

 

STATEMENT OF OPERATIONS DATA

 

2022

 

 

 

2021

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voyage revenues

$

223,742

 

 

 

$

131,562

 

 

$

590,145

 

 

 

$

406,991

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voyage expenses

 

52,813

 

 

 

 

54,113

 

 

 

163,753

 

 

 

 

148,979

 

 

Charter hire expense

 

8,806

 

 

 

 

8,806

 

 

 

26,132

 

 

 

 

21,250

 

 

Vessel operating expenses

 

50,430

 

 

 

 

41,158

 

 

 

140,236

 

 

 

 

128,810

 

 

Depreciation and amortization

 

35,894

 

 

 

 

36,356

 

 

 

103,411

 

 

 

 

107,207

 

 

General and administrative expenses

 

8,060

 

 

 

 

7,464

 

 

 

22,237

 

 

 

 

21,935

 

 

Loss on sale of vessels

 

739

 

 

 

 

-

 

 

 

440

 

 

 

 

5,817

 

 

Total expenses

 

156,742

 

 

 

 

147,897

 

 

 

456,209

 

 

 

 

433,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

67,000

 

 

 

 

(16,335

)

 

 

133,936

 

 

 

 

(27,007

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and finance costs, net

 

(15,069

)

 

 

 

(8,189

)

 

 

(29,361

)

 

 

 

(22,757

)

 

Interest income

 

429

 

 

 

 

175

 

 

 

845

 

 

 

 

502

 

 

Other, net

 

(13

)

 

 

 

110

 

 

 

169

 

 

 

 

(83

)

 

Total other expenses, net

 

(14,653

)

 

 

 

(7,904

)

 

 

(28,347

)

 

 

 

(22,338

)

 

Net income (loss)

 

52,347

 

 

 

 

(24,239

)

 

 

105,589

 

 

 

 

(49,345

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Net (income) loss attributable to the noncontrolling interest

 

(993

)

 

 

 

(769

)

 

 

(2,492

)

 

 

 

(150

)

 

Net income (loss) attributable to Tsakos Energy Navigation Limited

$

51,354

 

 

 

$

(25,008

)

 

$

103,097

 

 

 

$

(49,495

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of preferred dividends

 

(8,673

)

 

 

 

(8,555

)

 

 

(26,050

)

 

 

 

(24,934

)

 

Undistributed income to Series G participants

 

(343

)

 

 

 

-

 

 

 

(728

)

 

 

 

-

 

 

Deemed dividend on partially redeemed Series G convertible preferred shares

 

-

 

 

 

 

(457

)

 

 

-

 

 

 

 

(2,170

)

 

Net income (loss) attributable to common stockholders of Tsakos Energy Navigation Limited

$

42,338

 

 

 

$

(34,020

)

 

$

76,319

 

 

 

$

(76,599

)

 

Earnings (Loss) per share, basic

$

1.48

 

 

 

$

(1.72

)

 

$

2.77

 

 

 

$

(4.05

)

 

Earnings (Loss) per share, diluted

$

1.48

 

 

 

$

(1.72

)

 

$

2.77

 

 

 

$

(4.05

)

 

Weighted average number of common shares, basic

 

28,676,821

 

 

 

 

19,791,139

 

 

 

27,560,366

 

 

 

 

18,890,734

 

 

Weighted average number of common shares, diluted

 

28,936,397

 

 

 

 

19,791,139

 

 

 

27,850,848

 

 

 

 

18,890,734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA

 

September 30

 

 

 

December 31

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

Cash

 

201,425

 

 

 

 

127,197

 

 

 

 

 

 

 

 

 

Other assets

 

286,098

 

 

 

 

260,024

 

 

 

 

 

 

 

 

 

Vessels, net

 

2,577,323

 

 

 

 

2,402,958

 

 

 

 

 

 

 

 

 

Advances for vessels under construction and acquisition

 

42,158

 

 

 

 

104,635

 

 

 

 

 

 

 

 

 

Total assets

$

3,107,004

 

 

 

$

2,894,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt and other financial liabilities, net of deferred finance costs

 

1,494,676

 

 

 

 

1,373,187

 

 

 

 

 

 

 

 

 

Other liabilities

 

188,804

 

 

 

 

229,836

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

1,423,524

 

 

 

 

1,291,791

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

$

3,107,004

 

 

 

$

2,894,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Nine months ended

 

OTHER FINANCIAL DATA

 

September 30

 

 

September 30

 

 

 

2022

 

 

 

2021

 

 

2022

 

 

 

2021

 

Net cash provided by operating activities

$

82,136

 

 

 

$

4,617

 

 

$

155,691

 

 

 

$

35,204

 

 

Net cash (used in) provided by investing activities

$

(57,453

)

 

 

$

(1,890

)

 

$

(201,614

)

 

 

$

18,676

 

 

Net cash provided by (used in) financing activities

$

4,946

 

 

 

$

(26,010

)

 

$

120,151

 

 

 

$

(110,024

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TCE per ship per day

$

32,085

 

 

 

$

15,668

 

 

$

27,075

 

 

 

$

17,089

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses per ship per day

$

8,915

 

 

 

$

7,332

 

 

$

8,345

 

 

 

$

7,665

 

 

Vessel overhead costs per ship per day

$

1,338

 

 

 

$

1,248

 

 

$

1,243

 

 

 

$

1,227

 

 

 

 

10,253

 

 

 

 

8,580

 

 

 

9,588

 

 

 

 

8,892

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FLEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of vessels during period

 

65.5

 

 

 

 

65.0

 

 

 

65.5

 

 

 

 

65.8

 

 

Number of vessels at end of period

 

65.0

 

 

 

 

65.0

 

 

 

65.0

 

 

 

 

65.0

 

 

Average age of fleet at end of period

Years

10.4

 

 

 

 

10.0

 

 

 

10.4

 

 

 

 

10.0

 

 

Dwt at end of period (in thousands)

 

7,271

 

 

 

 

7,209

 

 

 

7,271

 

 

 

 

7,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time charter employment - fixed rate

Days

1,995

 

 

 

 

1,938

 

 

 

5,963

 

 

 

 

5,959

 

 

Time charter and pool employment - variable rate

Days

1,889

 

 

 

 

930

 

 

 

5,687

 

 

 

 

3,100

 

 

Period employment coa at market rates

Days

79

 

 

 

 

272

 

 

 

302

 

 

 

 

695

 

 

Spot voyage employment at market rates

Days

1,715

 

 

 

 

2,220

 

 

 

4,810

 

 

 

 

6,592

 

 

Total operating days

 

5,678

 

 

 

 

5,360

 

 

 

16,762

 

 

 

 

16,346

 

 

Total available days

 

6,023

 

 

 

 

5,980

 

 

 

17,887

 

 

 

 

17,884

 

 

Utilization

 

94.3

%

 

 

 

89.6

%

 

 

93.7

%

 

 

 

91.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Measures

 

Reconciliation of Net income (loss) to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

September 30

 

 

September 30

 

 

 

2022

 

 

 

2021

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Tsakos Energy Navigation Limited

$

51,354

 

 

 

$

(25,008

)

 

$

103,097

 

 

 

$

(49,495

)

 

Depreciation and amortization

 

35,894

 

 

 

 

36,356

 

 

 

103,411

 

 

 

 

107,207

 

 

Interest Expense

 

15,069

 

 

 

 

8,189

 

 

 

29,361

 

 

 

 

22,757

 

 

Loss on sale of vessels

 

739

 

 

 

 

-

 

 

 

440

 

 

 

 

5,817

 

 

Adjusted EBITDA

$

103,056

 

 

 

$

19,537

 

 

$

236,309

 

 

 

$

86,286

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP measures used within the financial community may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods as well as comparisons between the performance of Shipping Companies. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. We are using the following Non-GAAP measures:

 

(i) TCE which represents voyage revenue less voyage expenses is divided by the number of operating days less 236 days lost for the third quarter and 610 days for the nine-month of 2022 and 182 days for the prior year quarter of 2021 and 609 days for the nine-month, respectively, as a result of calculating revenue on a loading to discharge basis.

 

(ii) Vessel overhead costs are General & Administrative expenses, which also include Management fees, Stock compensation expense and Management incentive award.

 

(iii) Operating expenses per ship per day which exclude Management fees, General & Administrative expenses, Stock compensation expense and Management incentive award.

 

(iv) Adjusted EBITDA. See above for reconciliation to net income (loss).

 

Non-GAAP financial measures should be viewed in addition to and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

 

The Company does not incur corporation tax.

 

 

 

 

 

 


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